Daily News - Wednesday, 23 April 2025

PM pushes for stronger ties with Saudi in energy, tech (Financial Express)

Despite global economic challenges, India-Saudi Arabia trade has remained robust, especially in energy, agriculture, and fertilisers, with Prime Minister Modi highlighting ongoing talks for a Bilateral Investment Treaty (BIT) and the India-GCC Free Trade Agreement that could reshape regional economic ties. Modi emphasized expanding cooperation into new areas like green hydrogen, advanced tech, and renewable energy, noting Saudi Arabia’s role as India’s third-largest crude oil supplier as of March and a key partner in energy security as India targets 500 GW of renewable capacity by 2030. Both nations are also deepening strategic trust through defence collaboration, cybersecurity, and counterterrorism, while working together on initiatives like the India-Middle East-Europe Economic Corridor, positioned as a modern “Silk Route” for future regional growth. 

⁠USTR: Serious lack of reciprocity in trade with India (Business Standard)

⁠The United States Trade Representative (USTR) highlighted a $45.7 billion goods trade deficit with India in 2024, a 5.1% increase from 2023, citing a “serious lack of reciprocity” in the bilateral trade relationship, with India’s average applied tariff at 17%, significantly higher than the US average of 3.3%. Despite these imbalances, both countries have finalised the Terms of Reference (TOR) for the Bilateral Trade Agreement (BTA), aiming to reduce tariff and non-tariff barriers, open markets, and address regulatory restrictions across services, industrial, and agricultural sectors. US officials, including Vice President JD Vance, welcomed India’s constructive engagement and recent tariff reductions, stating that the BTA would drive job creation, supply-chain integration, and long-term economic gains for both nations. 

Lift trade barriers, boost US imports, Vance tells India (Hindustan Times)

During his visit to India, US Vice President JD Vance emphasized the need for India to reduce non-tariff barriers, expand market access, and increase purchases of American energy and defence hardware, framing these steps as central to advancing a peaceful and prosperous US-India partnership. He underscored President Trump’s vision of economic cooperation, advocating for deeper ties in energy—with India benefiting from cheaper US oil and gas—and in defence, where the US is pushing sales of F-35 jets, Javelin missiles, and Stryker vehicles, while encouraging joint production. Vance praised Prime Minister Modi’s leadership and India’s recent reforms, including amendments to civil nuclear liability laws, and reiterated the goal of finalizing the first tranche of a trade deal by autumn. 

‘India relatively less susceptible to external headwinds’ (The Hindu)

Despite global economic headwinds and trade tensions, India’s domestic growth remains resilient, driven by robust consumption and investment, while services exports and remittance inflows continue to buffer the current account, according to the RBI’s April bulletin. The central bank noted that India is well-positioned to benefit from supply-chain realignments and diversified FDI, with headline inflation easing to a 67-month low of 3.3% in March due to lower food prices. Additionally, the farm sector outlook is optimistic with a forecast of an above-normal southwest monsoon in 2025, which could support rural incomes and help contain inflation amid ongoing global financial volatility. 

Global trade shifts open doors to US ties: FM (mint)

Union Finance Minister Nirmala Sitharaman, speaking at Stanford’s Hoover Institution, highlighted that rising global trade barriers and inward-looking investment flows since 2019 offer strategic opportunities for India-US collaboration in key sectors such as semiconductors, quantum technology, pharmaceuticals, and nuclear energy. She emphasized that the global rebalancing between externally led and domestic growth, Main Street and Wall Street, and energy transition versus security, though challenging, opens up pathways for innovation and economic resilience. Her remarks come during her official US visit (20–25 April) for the IMF-World Bank Spring Meetings and bilateral talks with US Treasury Secretary Scott Bessent.